BISHKEK (TCA) — The Asian Development Bank (ADB) gathered more than 50 representatives from 21 local commercial banks in Kyrgyzstan on April 3 to discuss recent developments in international trade finance. The ADB Trade Finance Program’s (TFP) experts updated the gathering on how trade finance is evolving in the region and globally and shared recent case studies to support efforts by local banks to improve their trade finance products.
“Our aim in convening trade finance conferences is to deliver the ‘know-how’ that leads to more finance flowing to companies, including small and medium-sized ones to support trade,” said Investment Specialist at ADB’s Trade Finance Program Ms. Nana Khurodze. “And the flow of finance to these companies underpins growth, job creation, and better living standards.”
The workshops are designed to assess the experience of local banks and how it might be applied to future expansion of their product line. They also serve to keep banks updated about developments in international trade finance.
TFP has supported $580,000 in trade through two transactions in the Kyrgyz Republic, both of which involved small and medium-sized enterprises (SMEs). ADB currently works with one bank in the Kyrgyz Republic, DemirBank. This training aligns with TFP’s objective to partner with more commercial banks in the country.
Backed by ADB’s AAA credit rating, the Trade Finance Program (TFP) provides guarantees and loans to over 200 partner banks to support trade, enabling more companies throughout Asia to engage in import and export activities. Since 2009, ADB’s TFP has supported more than 15,000 SMEs across developing Asia—through over 21,000 transactions valued at over $36 billion—in sectors ranging from commodities and capital goods, to medical supplies and consumer goods.
In 2018, TFP grew almost 40% to support $6.2 billion in trade through 4,470 transactions. TFP complements its financial support with knowledge products, including a study that quantifies market gaps for trade finance, initiatives to increase the role of women in banking, efforts to enhance environmental safeguards, and initiatives to fight crime through greater transparency in the global financial system. TFP also provides workshops and seminars to increase knowledge and expertise in matters related to finance, trade, risk management, and fraud prevention.
